The Bangko Sentral ng Pilipinas (BSP) has approved other alternatives for banks to comply with the provisions of the Agri-Agra Reform Credit Act of 2009 (Republic Act 10000) including the investments in bonds issued by government banks for lending to the agriculture and agrarian reform sector.
The Bangko Sentral ng Pilipinas (BSP) has approved other alternatives for banks to comply with the provisions of the Agri-Agra Reform Credit Act of 2009 (Republic Act 10000) including the investments in bonds issued by government banks for lending to the agriculture and agrarian reform sector.
Under the law, banks are mandated to set aside 25 percent of their loan portfolios for agriculture and fisheries. Ten percent of this portion are specifically for agrarian reform-related loans and the other 15 percent for farming-related endeavors.
BSP Governor Nestor A. Espenilla Jr., who signed Circular No. 1009 (Amendments to the Rules and Regulations on the Mandatory Credit Allocation for Agriculture and Agrarian Reform Credit) last July 18, said the BSP will allow compliance for the 25 percent mandatory credit allocation for eligible securities as declared by the Department of Agriculture (DA) and if banks purchased these after April 2010.
See full article at Manila Bulletin
